Request A Quote

Fill in the contact form below and our team will be ready to answer to all your questions.

"*" indicates required fields

This field is for validation purposes and should be left unchanged.

What is Third Line Forcing?

02.10.2015 By Elliott Insurance Insurance News

Third line forcing is when a supplier provides goods or services on the condition that the purchaser buys good or services from a particular third party. It also occurs when the supplier refuses to provide goods and services unless the purchaser abides by this condition. Third line forcing is strictly prohibited.

But what does that mean for you? It means that a company cannot force its employees to use a specific financial product or service. This is third line forcing and it is illegal.

What Does This Mean For My Insurance

In many areas of business, certain types of insurance, such as Public Liability Insurance, is mandatory and a company can insist that all employees have this in place. However, you can’t be forced to use a specific insurance company and are free to choose your own insurance policy.

This practice is illegal because it means companies or individuals try to force products onto others as they are receiving discounts or financial reward. For example, if your employer tells you that they know a company who can provide insurance for you but you find it cheaper elsewhere, you are well within your rights to go with the cheaper company.

Another example may be if you purchase a car and receive finance from a company who in turn insists that you use a specific company or your car insurance. Third line forcing can have significant impact on competition and can make people feel compelled to use services they would not otherwise choose. It also means that you may not be getting the best product to suit your needs.

What Do I Need To Remember?

Basically, you need to remember that third line forcing is illegal and you are free to choose the product that best suits your needs. This is important to know if you feel you’re being placed under pressure from another party to use a particular insurance company. When choosing insurance, it’s best to shop around and get a number of quotes.

Speak to your insurance broker who will use their knowledge of the insurance industry to obtain a number of quotes and find a policy that best suits you. For any further questions or to discuss your insurance needs, contact Elliott Insurance Brokers on 1300 635 315 today and we would be more than happy to help.